Fixed Deposit

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Fixed Deposit
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What is Fixed Deposit?

• A savings scheme provided by banks, where the
  investors will gain a higher interest rate untill
  the maturity period.
• It is also called as Term deposit or time
  deposit.

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Why Fixed Deposit?

• This may be one of the savings benefit provided
  by banks, but the difference is that the interest
  rates are higher than any other savings account,
  which gains the user with high maturity value at
  the end of the maturity period.

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What is Maturity Value?

• The amount of money that you receive after the
  invested period of your initial amount is called
  as maturity value.

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How to Find Maturity Value in FD?

• The formula to calculate the maturity value is
• Maturity Value P x (1 r/n)nt
• P Principal Amount
• r Rate of Interest
• t Number of Period
• n Compounded Interest Frequency

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How to Find Maturity Value

• If you have invested Rs. 1,00,000 in a bank for 3
  years with interest rate of 5 , that is
  compounded half yearly, then your maturity value
  will be
• 100000 x (1
  (5/100)2)2x3
• 115762.5

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Compounding Frequency

• While calculating maturity value, each
  compounding fequency takes different values.
• Annually 1
• Half Yearly 2
• Quarterly 4
• Monthly 12
• Simple Interest Based 0

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Interest Earned till Maturity Value

• The interest earned is the greatest benefit in
  the fixed deposit savings.
• To find the interest earned, use the formula
• Interest Earned Amount Maturity Value -
  
  Principal Amount
• Hence your interest earned will be 115762.5
  100000 which is Rs. 15969.34

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Growth Comparison
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Fixed Deposit Calculation Online

• If it is really a tuf task to perform the
  calculations to find your maturity value, there
  are even more online fixed deposit calculator.
• Just enter the values and a click will give your
  savings benefits.